Sanderson reports slow operating growth

November 28, 2017

Acquisitive Sanderson Group plc has posted only a small increase in sales and profits for the full year, ended 30 September. At the software and IT services group, revenue increased to £21.56m, compared to £21.32m last year. And operating profit increased to £3.9m compared to £3.69m last time. Despite the slow overall growth, Sanderson is still putting share dividends up 11%.

For the full year, pre-contracted recurring revenues increased to £11.18m compared to £10.75m in 2016, representing 52% of total revenue in the period (2016: 50%). There was also continued strong cash generation with a net cash balance at 30 September of £6.18m (2016: £4.34m), “well ahead of market expectations”, said Sanderson.

The proposed final dividend is up 11% to 1.55 pence per share (2016: 1.4 pence), making a total dividend for the year of 2.65 pence (2016: 2.4 pence).

Sanderson chairman Christopher Winn (above) said of the results: "The group's continuing strong cash generation enables the board to maintain a progressive dividend policy, whilst continuing to invest in the further development of the group's businesses.